Can I Earn a Tax Credit for My New Furnace?

For a lot of households, there typically seems to be a long list of home improvement projects that they would like to do or new ideas they’d like to give a shot. While a handful may not be necessities, furnace replacement is one project that could be critical to keeping your home comfortable during the cooler months in Genoa.

Selecting a new furnace is a big investment. You’ll certainly notice the return-on-investment on your indoor comfort in addition to your utility costs, but it could be a tad overwhelming at first. The good news is that when you pick a new energy-efficient furnace, you may be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were extended through December 31, 2020. In order to obtain the tax credit, you must buy a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Assured Appliance & Heating & Air, we’ll help you choose an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to clarify that the furnace you pick has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE represents the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit won’t be the only savings you’ll observe when you purchase a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy bills throughout the year. And your household will also have greater confidence in your HVAC system to maintain your indoor space at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are other local savings you may be eligible for by purchasing a new high-efficiency furnace, give our teams at Assured Appliance & Heating & Air a call at 847-306-8990. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.